Posted in: Homeowner tips, Selling a home

Adding a bathroom? Consider the ROI first

Remodeled bathroom

Key insights:

  • A new bathroom addition can be a costly investment. Be sure that this project aligns with your homeownership or selling goals before beginning.
  • If personal enjoyment and ease of living outweigh a monetary return on investment, a bathroom addition could be the right choice for you.
  • It might be the right time to add a new bathroom to your space if you plan on making this your long-term home or hosting guests who prefer private space.

It’s fairly common for homeowners to wish they had more bathrooms. However, two new studies show that home sellers may not see the monetary or personal return on investment that they were hoping for when they add a bathroom to their existing residence.

When asking whether a new bathroom addition is right for you, be clear about your goals. Homeowners who will sell in the next few years may want to hold off, while those who plan to stay put may be more satisfied with this renovation – as their return will be the time they spend in the space.

Still have questions on if this project is right for you? Keep reading, and be sure to work with a REALTOR® for insights backed by expertise.

Why you might consider a bathroom addition in your home

The National Association of REALTOR® recently published the 2022 Remodeling Impact Report, which contains insights on the home upgrades that bring homeowners the most satisfaction. According to their findings, homeowners who opted for a new bathroom addition reported the following:

  • 82%: Have a greater desire to be in the home after completing the addition.
  • 48%: Feel accomplishment when reflecting on the bathroom addition.
  • 44%: Experience more enjoyment in their homes.

While a new bathroom addition has some positive feedback, it isn’t overwhelmingly so – with two of the three listed markers under 50% satisfaction. Read on to see if this home upgrade is really worth it.

Is it worth it for homeowners and sellers to complete a bathroom addition?

Even though homeowners may wish they had an additional bathroom, and some sellers may add a bathroom before selling, is this home upgrade a smart investment? Let’s explore the numbers.

The recently-released 2022 Cost vs. Value Report ( discusses the average return on investment for home renovations performed by a licensed contractor. In Minneapolis, homeowners:

  • With a bathroom addition in the mid-range of budget (~$65,000) recouped 47.7% of their investment.
  • With an upscale (~$115,000) new bathroom addition reported 46.1% return on investment.

Last, the Remodeling Report calculated a “Joy Score” for 15 renovation projects. This number represents the happiness that homeowners report after completing their respective projects. On a scale of ten, a new bathroom addition received an 8.2 Joy Score. And, while this may seem high, it still ranks last on the list of projects surveyed.

When is the best time to add a bathroom to your home?

Although the return on investment isn’t glaringly high with a new bathroom addition, there are some instances when it could be worth it to add a bathroom to your home.

Renovating to include an owner’s suite. It remains true that 83% of today’s buyers prefer at least two bathrooms in a home. If an owner’s suite addition could make your home more competitive on the market, or if you hope to enjoy the owner’s suite yourself, this renovation could be of benefit.

If you know you plan to stay in the home for years to come. Return on investment doesn’t always need to be measured with money. If you plan on staying put for the better part of the foreseeable future, you might consider a new bathroom addition. In this case, the return of the addition will not be monetary, but instead your own use of the space.

If you expect to have frequent guests or long-term visitors. If you often find yourself preparing your home for guests or have long term-visitors who prefer privacy, a new bathroom addition could be the ideal solution.

Is moving forward with a bathroom addition the right choice for you?

While there are many home improvements with high ROI, a new bathroom addition may not be worth it for those who are hoping to sell in the next few years. For those who have guest needs, or who would themselves make use of a bathroom over the course of many years, an additional bathroom may be a smart choice.

To help you determine the right plan for your house and your future, talk to Edina Realty or your agent before making big renovation or selling plans.

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